Supplier problems are putting pressure on Volvo Cars throughout 2022

Volvo Cars will stop production at the factory in Gothenburg for another two days next week. Lack of semiconductor components is the reason, writes Göteborgs-Posten.

In a comment, Volvo writes that sales throughout 2022 will be negatively affected.

Last week, Volvo announced that three shifts next weekend will be stopped for the same reason. It is now clear that five shifts Thursday-Friday next week will also be canceled.

At the same time, Volvo Car’s production in China is disrupted by shutdowns as a result of the country’s new wave of covid-19.

It is an impact in China, partly linked to the lack of semiconductors and partly covid-19, says Ben Foulds, press spokesperson at the company, to GP.

The factory in Torslanda in Gothenburg was closed due to a lack of semiconductors last summer as well.

Throughout 2022

In a press release, the Volvo management writes that the production disruptions will continue until the second quarter, as an effect of a shortage of semiconductor components. The restrictions within the supply chains are expected to affect the whole of 2022.

“Volvo Cars has expected to increase its sales volume for the full year 2022. The disruption means that the company now sees a marginal increase in sales volume for the full year 2022, compared with 2021,” the company writes.

The deterioration in the production situation is not due to the war in Ukraine, according to Volvo. On the other hand, the war entails increased costs for raw materials, energy and shipping.

“Volvo Cars continues to work with price increases to counteract the effect of these cost increases,” the company writes.